Closed-end Indenture

A provision in a bond issue which states that the holder has exclusive right to the collateral pledged to secure the issue. The bond carries less risk than those that are secured with a partial claim to the collateral pledged to multiple bonds; therefore the premium is typically lower.

Featured term of the day

nounan act of becoming larger ExamplesThere have been several increases in tax or tax increases in the last few years. • There is an automatic 5 per cent increase in price or price increase on January 1st. • Profits showed a 10 per cent increase or an increase of 10 per cent on last year.Usageincrease in the cost of livinga rise in the annual cost of livinga higher salary Examplesincrease in pay or pay increase • The government hopes to hold salary increases to 3 per cent.Usageshe had two increases last yearher salary went up twiceverbto grow bigger or higher ExamplesProfits have increased faster than the increase in the rate of inflation. • Exports to Africa have increased by more than 25 per cent. • The price of oil has increased twice in the past week.Usageto increase in priceto cost moreUsageto increase in size or valueto become larger or more valuableto make something bigger or higherUsagethe company increased her salary to £50,000the company gave her a rise in salary to £50,000"...turnover has the potential to be increased to over 1 million dollars with energetic management and very little capital" [Australian Financial Review]"...competition is steadily increasing and could affect profit margins as the company tries to retain its market share" [Citizen (Ottawa)]